DGAP-Adhoc

Kardex AG: Half Year Results 2014 / Successful first half year for Kardex - Seite 2

operating result of EUR 12.8 million and an EBIT margin of 11.0%, the
division again achieved a solid EBIT, once again an improvement of the
previous year's figure.

Kardex Mlog cements turnaround in first half

Kardex Mlog's objective for 2014 is to cement the turnaround achieved in
2013. In the first half, the division achieved a positive, albeit modest,
operating result of EUR 0.4 million (EUR 0.2 million) on revenues down 3.5%
at EUR 31 million. There is, however, a price to pay for taking a
consistently risk-aware approach to project delivery and for the company's
heightened focus on product and service orders: project bookings in the
first half were roughly 46% lower than in the previous year. The marked
upturn in bookings in the strategically important modernization business
(+21.5%) and in the service segment (+9.5%) was not sufficient to fully
offset this decrease. Total bookings were down almost 26% against the
previous year. Kardex Mlog launched a number of new and innovative products
in 2014, further strengthening its sound position in the market. Management
is confident that its new business model will soon yield the desired
results. However, proof still needs to be provided that this can be
accomplished on a sustainable basis.

Solid balance sheet despite high distributions

The Kardex Group has a sound balance sheet, is debt-free and has the
necessary flexibility to seize any opportunities arising in the market. The
Annual General Meeting of Kardex AG on 24 April approved the distribution
of CHF 2.65 per share (CHF 1.25 ordinary dividend, CHF 1.40 special
dividend from the sale of Stow Division), corresponding to a total pay-out
to the shareholders of EUR 16.8 million. This outflow of funds was offset
more than half by the free cash flow of EUR 9.4 million generated in the
first half of the year. Since the beginning of 2013, a total of around EUR
50 million has been channeled back to shareholders. Despite these
repayments, the Group's equity ratio was held at a comfortable 55.9% as at
the end of the period under review.

Cautiously optimistic outlook

The Kardex Group expects to turn in a solid performance on the back of
continuing solid market conditions. The favorable outlook for Kardex
Remstar is clouded solely by the sluggish volume of project bookings
reported by Kardex Mlog, which could temporarily curb the latter division's
positive performance. The Board of Directors is currently looking into a
number of smaller acquisitions to systematically strengthen Kardex Remstar.